Abuja : Nigeria has signed financing deals with oil majors Shell and Chevron to develop projects that would boost reserves and revenue, the Nigerian National Petroleum Corporation (NNPC) said on Thursday, AFP reported.

“Two sets of alternative financing agreements on Joint Venture (JV) projects to boost reserves and production in line with government’s aspiration were executed in London on Monday,” said a statement by the NNPC in Abuja.

“The two projects are expected to generate incremental revenues of about $16 billion within the assets’ life cycle including a flurry of exploratory activities that would generate employment opportunities in the industry, boost gas supply to power and rejuvenate Nigeria’s industrial capacity utilization,” it said.

The NNPC said the deal with Chevron would see the development of the Sonam project, hitherto financed through cash calls.

The project with a potential for reserves of 211 million barrels of crude and gas reserves of 1.9 trillion cubic feet was expected to begin to bear fruits in the next three to six months, it said.

The NNPC said the agreement with Shell would facilitate the development of 156 development activities on some oil fields in the Niger delta.

Nigeria is aiming to ramp up reserves, output and boost revenue in the face of dwindling oil earnings.

Nigeria, Africa’s biggest oil producer and exporter, accounting for some two million barrels per day, relies on the sector for 90 percent of foreign exchange earnings and 70 percent of government revenue.

—AB/IINA